Positive Externalities Flashcards
1
Q
What are positive externalities in consumption
A
Benefits to 3rd parties as a result of the actions of consumers
2
Q
Examples of positive externalities
A
Healthcare
Education
Exercise
Healthy eating
3
Q
What is higher with positive consumption externalities
A
MSB > MPB
4
Q
What causes positive consumption externalities to be under utilised
A
Self interest
Under consumption/production
Misallocation of resources
5
Q
What are positive production externalities
A
Benefits to 3rd parties as a result of the actions of producers
6
Q
Examples of positive production externalities
A
In work training
7
Q
What is lower in positive production externalities
A
MSC < MPC
8
Q
What causes positive production externalities to be under utilised
A
Self interest
Under production/consumption
Misallocation of resources
